NIFTY 50

Taking Stock: Best is yet to come for the steel sector, says Dimensions Corp’s Ajay Srivastava

Updated : June 04, 2021 20:03:59 IST

It is the third straight week of gains for the market. The Nifty on Friday ended with 1.5 percent gain, while the midcap and smallcap indices gained nearly 3-4 percent.

Drop in COVID cases and hopes of reopening also helped the market continue on the recovery theme.

Speaking to CNBC-TV18, Ajay Srivastava of Dimensions Corporate Finance Services, said, “It is not that everything is going up. If you see the number of candidates, which are now going up, it is narrowing. So, there is a kind of rush towards fewer and fewer companies and therefore what you see – gains are 30 percent, 40 percent, 90 percent compared to more spread over. So, more and more money is chasing less and less stocks. I can clearly see a funnel coming through.”

He also believes that the best is yet to come for the steel sector. “If you don’t have it, buy it and if you have it, then keep it. Do not panic with all the calls which came out last week. Their best is still to come and therefore do not consider them high risk now with the deleveraged balance sheet."

"They were extremely high risk 4-5 years back, but now on their current balance sheets, they are good candidates, good growth stories, and they are protected,” he said.

According to Srivastava, Indiabulls Housing and Religare are amazing stories of restructuring. “If they can get a fantastic promoter, I think both would do well in this market,” he said.

Rohit Srivastava, founder and strategist of Indiacharts.com, said he is positive on power. “You see a lot of interest in power because of talk about alternate energy, green energy and so on. Stocks not just directly related to power, but anything related to power is just shooting up. So, that is one sector you should focus on,” he said.

For the full discussion, watch the video.
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